As indicated by Chinese iron ore futures yesterday afternoon, the spot price remained under pressure overnight.
According to Metal Bulletin’s iron ore index the spot price for 62% fines fell a further 34c, or 0.65%, to $51.76 a tonne.
Given Dalian iron ore futures were down by 4% yesterday, their maximum allowable decline, the small fall could almost be seen as a victory to some market participants.
However, before the Champagne corks are popped, it must be noted that in overnight trade, futures have fallen by an additional 1.69%.
If sustained during Thursday’s day session, it runs the risk of the spot price falling back below the $50 a tonne level this evening.
Trading on the Dalian commodities exchange gets underway at 11am AEST.